Bitcoin Price Falters At $64K, Chinese Stocks Tumble, What’s Next for BTC?
With the recent spurt of bullish momentum, Bitcoin (BTC) retested the $64K hurdle but failed to sustain it. As a result, BTC is retracing. The daily chart shows a bearish outlook for Bitcoin price that could undo the past week’s gains.
Bitcoin Price Stumbles At $64K
Crypto markets enjoyed bullish sentiment in the past week as Bitcoin price hit $64K over the weekend. This enthusiasm continued into the weekday as BTC saw another buying spike in the US trading session. In hindsight, the uptick pushed Bitcoin deep into the $64K territory, forming a local top and leading to a 3.49% crash.
As of Tuesday, October 8, Bitcoin price is up 0.58% and remains indecisive.
Bitcoin Price Today
Let’s explore why BTC could be crashing.
US-Listed Chinese Stocks Plunge After Historic Rally
The Chinese stock market saw a massive uptick after China announced aggressive stimulus plans in late September. This move caused a historic rally that led some of the Indices to observe the best performance since 2008. The stimulus-led rally pushed the CSI 300, HSI, and SSE Composite to rally 36% and 30%, respectively.
CSI 300, HSI, and SSE Composite Performance
Additionally, US-listed Chinese stocks like Ali Baba, BiliBili, Baidu are down 8.9%, 17.2% and 10.1%, respectively. Analysts attribute the downfall of Chinese stocks to a loss of momentum. Hong Kong’s Hang Seng Index (HSI) tumbled 9.5%, which is the worst performance seen since 2008.
BTC Price Analysis: What’s next for Bitcoin?
The outlook for Bitcoin remains bearish is as explained in a previous CoinGape article. BTC price is following scenario one and has promptly retraced 3.54% after piercing the daily resistance zone, extending from $63.9K to $65K.
The RSI surged from around 50 to 65 but failed to hit the overbought zone of 70. As Bitcoin price trades around $62.5K, investors must pay attention to the $61.8K support level, which provided a massive foothold last week, facilitating a 4.25% rally.
According to the previous Bitcoin price forecast, a breakdown of this level seems likely and could trigger a 7% correction that stabilizes around the $57.9K to $57.2K support levels.
BTC/USDT 4-hour chart
Popular Analyst Forecasts New ATH For BTC
While the short-term outlook remains bearish, Philip Swift, a popular crypto analyst, notes that timeframe analysis that compares BTC and global liquidity is noise. A zoomed-out chart shows that the global liquidity has hit a new ATH, which should lead to Bitcoin hitting a new high as well.
BTC vs. Global Liquidity
While the long-term outlook for Bitcoin price remains bullish, investors need to understand that the short-to-mid-term scenario remains indecisive due to multiple reasons – uncertain macroeconomic policies, geopolitical tensions, risk-off factors due to the war between Iran and Israel, and so on.
Regardless, a swift breakout and flip of the $65K hurdle into a support floor will suggest that bulls mean business. This move will invalidate the bearish thesis and propel BTC to $70K. In some cases, this development could also push Bitcoin price to set up a new all-time high.
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